PUBLIC CORPORATION | NATIONAL LIGA, 439 SCRA 130

G.R. No. 130775 | September 27, 2004 THE NATIONAL LIGA NG MGA BARANGAY, represented by ALEX L. DAVID in his capacity as National President and for his own Person, President ALEX L. DAVID, petitioners, vs. HON. VICTORIA ISABEL A. PAREDES, Presiding Judge, Regional Trial Court, Branch 124, Caloocan City, and THE DEPARTMENT OF INTERIOR and LOCAL GOVERNMENT, represented the HON. SECRETARY ROBERT Z. BARBERS and MANUEL A. RAYOS, respondents. G.R. No. 131939 | September 27, 2004 LEANDRO YANGOT, BONIFACIO LACWASAN and BONY TACIO, petitioners, vs. DILG Secretary ROBERT Z. BARBERS and DILG Undersecretary MANUEL SANCHEZ, respondents. Ponente: Tinga, J.

FACTS: June 11, 1997: Private respondent Manuel A. Rayos (as petitioner therein), Punong Barangay of Barangay 52, District II, Zone 5, District II, Caloocan City, filed a petition for prohibition and mandamus, with prayer for a writ of preliminary injunction and/or temporary restraining order and damages before the RTC of Caloocan. He alleged that respondent therein Alex L. David (now petitioner), Punong Barangay of Barangay 77, Zone 7, Caloocan City and then president of the Liga Chapter of Caloocan City and of the Liga ng mga Barangay National Chapter, committed certain irregularities in the notice, venue and conduct of the proposed synchronized Liga ng mga Barangay elections in 1997. - The following irregularities were supposedly the: 1) publication of the notice in the Manila Bulletin but without notification in writing to the individual punong barangays of Caloocan City; 2) lack of specification in the Notice of Meeting, dated June 8, 1997, for the Liga Chapter of Caloocan City as to whether the June 14, 1997 meeting would be held at 8:00 A.M. or 8:00 P.M.; 3) setting of the meeting at Lingayen, Pangasinan; and 4) setting of the deadline for the filing of the Certificates of Candidacy at 5:00 P.M. of June 11, 1997. Due to the setting of the June 11 deadline for the filing of the Certificates of Candidacy at 5:00 P.M., Rayos was unable to obtain a certified true copy of the COMELEC Certificate of Canvas and Proclamation of Winning Candidate, which were needed to be a delegate, to vote and be voted for in the Liga election. June 13, 1997: The Executive Judge issued a temporary restraining order (TRO), effective for 72 hours, enjoining the holding of the general membership and election meeting of Liga Chapter of Caloocan City on June 14. However, the TRO was allegedly not properly served on David. So, the election for the officers of the Liga-Caloocan was held as scheduled, and David was proclaimed President of the Liga-Caloocan. He took his oath and assumed the position of ex-officio member of the Sangguniang Panlungsod of Caloocan.

By: MP Rafols

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July 17, 1997: Rayos filed a second petition--this time, for quo warranto, mandamus and prohibition with prayer for a writ of preliminary injunction and/or temporary restraining order and damages against David, Nancy Quimpo (Presiding Officer of the Sangguniang Panlungsod of Caloocan City) and Secretary Barbers. He alleged that, in the June 14, 1997 elections, he was elected President of the Liga Caloocan Chapter by its members pursuant to their Resolution/Petition No. 001-97. July 18, 1997: The presiding judge granted the TRO, enjoining David, Quimpo and Secretary Barbers from proceeding with the July 19, 1997 synchronized elections for the Provincial and Metropolitan Chapters of the Liga. This was only for the purpose of maintaining the status quo and was effective for 72 hours. July 18, 1997: At petitioner David's instance, Special Civil Action (SCA) No. C-512 pending before Branch 126 was consolidated with SCA No. C-508 pending before Branch 124. July 25, 1997: Before the consolidation of the cases, the Department of the Interior and Local Government (DILG), through respondent Secretary Barbers, filed in SCA No. C-512 an Urgent Motion invoking the President's power of general supervision over all local government units and seeking injunctive reliefs. The DILG prayed that, pursuant to its delegated power of general supervision in Administrative Order No. 267 (dated February 18, 1992), it would be appointed as the Interim Caretaker to manage and administer the Ligas affairs until a new set of National Liga Officers have been duly elected and have assumed office. July 31, 1997: David opposed the DILG's Urgent Motion, claiming that the DILG was not allowed to seek any sanction against a co-respondent--such as by filing a cross-claim-without first seeking leave of court. Also, he said that the DILG's request to be appointed as interim caretaker constituted undue interference in the Ligas internal affairs. July 28, 1997: Before its Urgent Motion was acted upon by the lower court, the DILG, through then Undersecretary Manuel Sanchez, issued Memorandum Circular No. 97-176. It cited Davids reported violations of the Liga ng mga Barangay Constitution and By-Laws and the "widespread chaos and confusion" among local government officials as to who were the qualified ex-officio Liga members in their respective sanggunians. It also directed all provincial governors, vice governors, city mayors, city vice mayors, members of the sangguniang panlalawigan and panlungsod, DILG regional directors and other concerned officers: 1) not to recognize and/or honor any Liga Presidents of the Provincial and Metropolitan Chapters as ex-officio members of the sanggunian concerned until further notice from the Courts or the DILG; and 2) to disregard any pronouncement and/or directive issued by David on any matter relating to the Liga ng mga Barangays affairs until further notice from the Courts or the DILG. August 4, 1997: Public respondent Judge Victoria Isabel A. Paredes granted the DILGs Urgent Motion for appointment as interim caretaker. August 11, 1997: David filed an urgent motion for the reconsideration of the assailed order and the declaration of respondent Secretary Barbers as being in contempt of Court. - He claimed that the August 4, 1997 order divested the duly elected members of the Board of Directors of the Liga National Directorate of their positions without due process of law.
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He wanted Secretary Barbers declared in contempt for having issued, through his Undersecretary, Memorandum Circular No. 97-176 even before respondent judge had issued the questioned order. Meanwhile, the DILG issued Memorandum Circular No. 97-193, providing supplemental guidelines for the 1997 elections of the Liga ng mga Barangays provincial, metropolitan, and national chapters. The Memorandum Circular set the synchronized elections for the provincial and metropolitan chapters on August 23, 1997 and for the national chapter on September 6, 1997. August 12, 1997: The DILG issued a Certificate of Appointment in favor of Rayos as president of the Liga ng mga Barangay of Caloocan City. The appointment gave Rayos legal basis for ex-officio membership in the Sangguniang Panlungsod of Caloocan City and for qualification to participate in the Liga ng mga Barangays National Chapter Election. August 23, 1997: The DILG conducted the synchronized elections of Provincial and Metropolitan Liga Chapters. September 6, 1997: The National Liga Chapter held its election of officers and board of directors. James Marty L. Lim was elected president of the National Liga. October 1 1997: Public respondent judge denied David's motion for reconsideration. October 10, 1997: petitioners filed the instant Petition for Certiorari under Rule 65 of the Rules of Court, seeking to annul public respondent judge's August and October 1997 orders. - They argued that: 1) Under Administrative Order No. 267, the Presidents power of general supervision over local government units does not apply to the Liga and its various chapters, because the Liga is not a local government unit. 2) Under Section 507 of the Local Government Code (Republic Act No. 7160), the Liga shall be governed by its own Constitution and By-laws. Pursuant to the Liga Constitution and By-laws, the duly elected officers and directors of the National Liga elected in 1994 had a vested right to their positions and could only be removed therefrom for cause by affirmative vote of 2/3 of the entire membership. Thus, respondent judges questioned order divested the Ligas then incumbent officers and directors of their right to their respective offices without due process of law. 3) Assuming that the Liga could be subsumed under the term "local governments," over which the President, through the DILG Secretary, has the power of supervision, the actions contemplated by the DILG as interim caretaker are all clearly of control. - They questioned the appointment of Rayos as Liga-Caloocan President, since, at that time, David was occupying that position and it was still the subject of quo warranto proceedings (that Rayos himself had instituted.) - They claimed that DILG Memorandum Circular No. 97-193 replaced the implementing rules adopted by the Liga pursuant to its Constitution and By-laws. September 24, 1998: James Marty L. Lim, the newly elected President of the National Liga, filed a Motion for Leave to File Comment in Intervention , with his Comment in Intervention attached, invoking the validity of the DILG's actions relative to the conduct of the Liga elections. In addition, he sought the dismissal of the instant petition. In the interim, another petition--this time, for Prohibition with Prayer for a Temporary Restraining Order--was filed by several presidents of Liga Chapters. - They asked that the Supreme Court declare the DILG Secretary and Undersecretary as having no constitutional or legal power to exercise control or even supervision over the
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National Liga ng mga Barangay, to take over its officers funct ions, and to suspend its constitution. - They also asked that all of respondents acts in connection with their caretakership of the Liga be declared void. The petition was consolidated with G.R. No. 130775, but it was eventually dismissed because the petitioners failed to submit an affidavit of service and proof of service of the petition. December 1, 1998: David died and was substituted by his legal representatives.

ISSUES: 1) WON respondent Judge acted with grave abuse of discretion in appointing the DILG as interim caretaker to administer and manage the affairs of the National Liga Board - Sub-issue 1: WON the Liga ng mga Barangay is a government organization that is subject to the DILG Secretary's power of supervision over local governments as the alter ego of the President - Sub-issue 2: WON the respondent Judge's designation of the DILG as Ligas interim caretaker has invested the DILG with control over the Liga - Sub-issue 3: WON DILG Memorandum Circular No. 97-176 (issued before the DILG was designated as interim caretaker) and DILG Memorandum Circular No. 97-193 and other acts (which the DILG made in its capacity as interim caretaker) involve supervision, rather than control, of the Liga HELD/RULING: (Davide, Jr., C.J., Puno, Panganiban, Quisumbing, Ynares-Santiago, Sandoval-Gutierrez, Carpio, Austria-Martinez, Corona, Carpio Morales, Callejo, Sr. and Azcuna, JJ., concur. Chico-Nazario, J., on leave.) YES. HELD SUB-ISSUE 1: Yes. It is the declared policy of the State that its territorial and political subdivisions should enjoy genuine meaningful local autonomy to enable them to attain their fullest development as selfreliant communities and make them more effective partners in the attainment of national goals. Hence, Section 4, Article X of the 1987 Constitution states: Sec. 4.The President of the Philippines shall exercise general supervision over local governments. Said provision has been interpreted to exclude the power of control. In Mondano v. Silvosa, et al., the Supreme Court defined supervision as "overseeing, or the power or authority of an officer to see that subordinate officers perform their duties, and to take such action as prescribed by law to compel his subordinates to perform their duties. Control, on the other hand, means the power of an officer to alter or modify or nullify or set aside what a
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subordinate officer had done in the performance of his duties and to substitute the judgment of the former for that of the latter. In Taule v. Santos, the Court held that the Constitution permits the President to wield no more authority than that of checking whether a local government or its officers perform their duties as provided by statutory enactments. In De Leon v. Esguerra, the Court ruled that even barangays are meant to possess genuine and meaningful local autonomy so that they may develop fully as self-reliant communities. As the basic political unit, the barangay serves as: the primary planning and implementing unit of government policies, plans, programs, projects and activities in the community and as a forum wherein the collective views of the people may be expressed, crystallized and considered, and where disputes may be amicably settled. The barangay is positioned to influence and to direct the entire countrys development. This was heralded by the adoption of the bottom-to-top approach process of development which requires the barangays development plans to be considered in the development plans of the municipality, city or province. In turn, those plans are to be taken into account by the central government. The Liga ng mga Barangay is the vehicle assigned to make this new development approach materialize and produce results. It is the organization of all barangays--the primary purpose of which is the determination of the representation of the Liga in the sanggunians, and the ventilation, articulation, and crystallization of issues affecting barangay government administration and securing solutions thereto, through proper and legal means. - It has chapters at the municipal, city, and provincial and metropolitan political subdivision levels. The municipal and city chapters are composed of the barangay representatives from the municipality or city concerned. The presidents of the municipal and city chapters form the provincial or metropolitan political subdivision chapters. The presidents of the Liga at the municipal, city and provincial levels, automatically become ex-officio members of the Sangguniang Bayan, Sangguniang Panlungsod and Sangguniang Panlalawigan. The presidents of the chapters of in highly urbanized cities, provinces, the Metro Manila area and other metropolitan political subdivisions constitute the National Liga ng mga Barangay. The Ligas are primarily governed by the Local Government Code. However, they are empowered to make their own constitution and by-laws to govern their operations. Sec. 507 of the Code provides: Sec. 507. Constitution and By-Laws of the Liga and the Leagues. All other matters not herein otherwise provided for affecting the internal organization of the leagues of local government units shall be governed by their respective constitution and by-laws which are hereby made suppletory to the provision of this Chapter: Provided, That said Constitution and By-laws shall always conform to the provision of the Constitution and existing laws.
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PUBLIC CORPORATION | NATIONAL LIGA, 439 SCRA 130

The Liga ng mga Barangays Constitution and By-Laws provides that the Ligas express or implied corporate powers are vested in the board of directors of each level of the Liga. The National Liga Board of Directors promulgated the rules for the conduct of its Liga's general elections. Given the aforementioned description of the Liga, it is definitely not a local government unit. Would Section 4, Article X of the 1987 Constitution thus have no application to it? This question was resolved in Bito-Onon v. Fernandez, where the Court ruled that the President's power of the general supervision, as exercised therein by the DILG Secretary as his alter ego, extends to the Liga ng mga Barangay. The rationale for making the Liga subject to DILG supervision is quite evident. It is a group of barangays which is represented by punong barangays. The representatives of the Liga sit in an ex officio capacity at the municipal, city and provincial sanggunians. As such, they enjoy all the powers and discharge all the functions of regular municipal councilors, city councilors or provincial board members, as the case may be. Thus, the Liga is the vehicle through which the barangay participates in the enactment of ordinances and formulation of policies at all the legislative local levels higher than the sangguniang barangay. HELD SUB-ISSUE 2: Yes. When the respondent judge eventually appointed the DILG as interim caretaker to manage and administer the affairs of the Liga, she effectively removed the management from the National Liga Board and vested control of the Liga on the DILG. HELD SUB-ISSUE 3: No. 1) A cursory glance at the DILG's prayer for appointment as interim caretaker reveals that what the DILG wanted was to take control over the Liga. Even if said "caretakership" was contemplated to last for a limited time, the fact remains that it was a conferment of control in derogation of the Constitution. 2) Even before the respondent Judge designated the DILG as interim caretaker of the Liga, the DILG issued Memorandum Circular No. 97-176, directing local government officials not to recognize David as the National Liga President and his pronouncements relating to the Ligas affairs. The action was premature and smacked of superciliousness and injudiciousness. 3) With his Department already appointed as interim caretaker of the Liga, Secretary Barbers nullified the results of the Liga elections and promulgated DILG Memorandum Circular No. 97-193, where he laid down the supplemental guidelines for the 1997 synchronized elections of the provincial and metropolitan chapters and for the election of the national chapter of the Liga ng mga Barangay; scheduled dates for the new

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provincial, metropolitan and national chapter elections; and appointed respondent Rayos as president of Liga-Caloocan Chapter. These acts went beyond the sphere of general supervision and constituted direct interference with the political affairs of the Liga and of the barangay as an institution. The election of Liga officers is part of the Liga's internal organization, for which the latter has already provided guidelines. Furthermore, the DILG assumed control when it appointed respondent Rayos as president of the Liga-Caloocan Chapter prior to the newly scheduled general Liga elections, although David's term had not yet expired. The DILG substituted its choice (Rayos) over the choice of majority of the punong barangay of Caloocan (David). The latter was elected and had been sitting as an ex-officio member of the sangguniang panlungsod in accordance with the Liga Constitution and By-laws. Yet, the DILG extended the appointment to respondent Rayos although it was aware that the position was the subject of a quo warranto proceeding instituted by Rayos himself, thereby pre-empting the outcome of that case. The DILG's authority over the Liga is limited to seeing to it that the rules are followed, but it cannot lay down such rules itself, nor does it have the discretion to modify or replace them. In this particular case, the most that the DILG could do was review the acts of the incumbent officers of the Liga in the conduct of the elections to determine if they committed any violation of the Liga's Constitution and By-laws and its implementing rules. If the National Liga Board and its officers had violated Liga rules, the DILG should have ordered the Liga to conduct another election in accordance with the Liga's own rules, but not in obeisance to DILG-dictated guidelines. Neither had the DILG the authority to remove the incumbent officers of the Liga and replace them, even temporarily, with unelected Liga officers. The petition was granted. The Order of the RTC was set aside. DILG Memorandum Circulars No. 97-176 and No. 97-193 were declared void for being unconstitutional and ultra vires. No pronouncements as to costs.

By: MP Rafols

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